Case Study: August 01 Paid $126 000 cash for a second-hand motor vehicle (MV 1). ChiHerbal estimated the motor vehicle’s useful life and residual value at 5 years and $18 000.
Paid $1 250 cash to recondition MV 1’s engine.
October 30 Paid $34 000 cash for equipment. ChiHerbal estimated the equipment’s useful life and residual value at 10 years and $1 250.
December 31 Paid $900 cash for MV 1’s transmission repairs and oil change.
June 30 Recorded depreciation on MV 1 and equipment.
July 13 Paid $340 cash to replace a damaged bumper bar on MV 1.
December 01 Traded in MV 1 for a new motor vehicle (MV 2) that cost $272 000. The dealer granted a trade-in allowance of $102 000 on MV 1, and the balance was paid in cash. ChiHerbal estimated MV 2’s useful life and residual value at 7 years and $34000
June 30 Recorded depreciation on MV 2 and the equipment. ChiHerbal decided to change the basis of measuring equipment to the revaluation model. The company assessed the equipment’s fair value at 30 June 2017 at $30 662.
Required: Prepare general journal entries to record the above events.

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